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Constitutional Improvements

6. Hong Kong is a Crown Colony and under its constit-

ution there is no elected representation on the central }

councils of Government (i.e. the Executive and Legis- lative Councils). This has given rise to difficulties in the administration of the Colony's highly complex and sophisticated community. However, there can be no constit utional progress towards self-government in Hong Kong since there have been frequent and plain indications that the Chinese Peoples Government expects the constitutional status quo to be maintained. Moreover, introduction of the electoral principle into the Legislative Council would inevitably import the politics of the "two" Chinas into the conduct of the Colony's affairs. The Chinese Peoples Government would not tolerate this and the outcome might well be a determined communist bid for control of the institutions of central government, which could succeed in conditions of electoral apathy.

Local Government

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7. In view of the obvious limitations on constitutional development in the sphere of central government, the Hong Kong Government has been examining the possibility of using the machinery of local government as a medium by which the people of the Colony might be given greater opportunity of associating themselves with the conduct of their affairs. This matter has been under examination for a considerable time and we now await the Governor's proposals on the subject. However, in view of the dangers referred to in paragraph 6 above, the Governor's approach to the matter will be a cautious one and it is likely that his proposals will be confined to a modest increase in the functions and powers of the Urban Council (the only existing local government authority with executive functions which contains elected members), with a measure of financial responsibility, and for the rest will do no more than envisage the establish- ment of other local authorities with similar functions and responsibilities for the growing concentrations in the New Territories.

Appointment of Parliamentary Commissioner for Administration

Ombudsman

8. It is possible that the matter of the appointment of an ombudsman may be raised by supplementary Question under the last part of the substantive question. It has been the opinion of the Governor and his advisers that, before any final conclusion is reached on this matter, steps should first be taken to strengthen the machinery which already exists for enabling the people of Hong Kong to make known and seek redress for their grievances. In discussion last Friday (10 July) Mr Royle asked the Department to prepare proposals for the appointment of an ombudsman which would be put to the Governor, with a number of other proposals in the near future.

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Existing Machinery

9. There have been arrangements in Hong Kong for some time enabling members of the public to make known and seek redress for their grievances. These arrangements include:

CONFIDENTIAL

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